Taxi vs Private Hire (Grab) Driver – Which is better to earn

In the past, your friends will always ‘jio’ you to go take-up the taxi driver licence course when you reach the eligible age of 30.

Having a taxi-licence is a safety net that can ensure your family still got money to eat if you got retrenched.

These days, fewer people still ‘jio’ you to drive taxi, they refer you to become a private-hire driver instead, driving for Singapore’s favourite Grab. so Who is better?

Eligibility – Who Can Drive

Private-Hire

From 20 years old Singaporean, PR, Work Permits Hold a valid class 3/3A/3C/3CA Singapore driving licence for at least a continuous period of two years at the point of application Possess Private car Driver Vocational Licence (PDVL). Allowed to provide only private-hire service

Child-Seat Rule

Private-Hire

Taxi

Classified as public service vehicles and exempted from the child seat rule

Not required to provide child seat

Earnings

Private-Hire

Private-Hire Drivers are assigned jobs primarily from Grab. More players such as Ryde, blockchain MVL, Go-Jek from Indonesia and Jugnoo from India are entering the market in 2018 after Uber announced their exit from Singapore.

Private-hire cars are not allowed to ply the road for street hail

Taxi

Traditional taxis are able to accept job bookings and pick-up riders from street-hails.

Earning Include

Entitled to JustGrab’s dynamic pricing where prices are increased during period of high demand

Driving a taxi seems to be a better option than driving as a private-hire driver.

Taxi-drivers have multiple surcharges, allowed to pick-up/drop off riders at taxi stands, can declare car costs as expenses and do not have to worry about having a child seat

BUT, Why are there more people flocking to drive private-hire than a taxi?

More jobs for private-hire than taxi More riders are choosing private-hire booking services than taxis

Private-hire’s flexibility There is no requirement to clock minimum hours or trips on a daily basis

Social perception Being a private-hire driver is more fashionable than being a taxi driver. Many private-hire drivers lead a double life, some are bankers by day and driver by night. It would not have been possible if they were driving a taxi. Many of these part-time drivers would not want to be seen driving a smurf-blue taxi at their office car park.

Lower barrier to entry Private-hire has a very low barrier to entry and is open to permanent residents and also work permit holders whereas Taxi is reserved exclusively for Singaporeans who are aged at least 30 years and above

What do you think? Does a taxi-driver earn more or private-hire is better?

Commander-in-Chief @ FirstlaneSwam to Sunny island to escape from the half-brother who ruled with an iron-fist and feed the family with needles or to dogs.Kim is my family name and Jio is my favorite fruit.Screwing around with Uber & Grab since 2014